Important Accounting words : Important Accounting words Business : - Every legal enterprises setup with a view to earning profit is called business.

PowerPoint Presentation : Capital :- capital is that amount of cash, goods or assets which is initially invested by the proprietor which starting his business, if additional amount is invested after the starting of the business it is also called the capital. Profit in the business adds to the capital which loss in business reduces the capital.

PowerPoint Presentation : Drawing:- when the proprietor of a business withdraws cash or goods from business for his private use is called drawing. It is entered in a separate account ‘Drawing Account’ while passing a journal eatery drawing account is always debited and cash account&purchase account are credited

PowerPoint Presentation : Turnover:- the total amount of sale (cash &credit) during a particular period is called turnover Debtors: - The person \institution to whom you have sold goods\money on credit is called debtors till the full amount is not paid.

PowerPoint Presentation : Stock:- the unsold goods’ remaining on a particular date or during a particular period is called stock. The stock estimated at the end of financial year for the purpose of calculating the profit of business closing stock at the beginning of next financial year it becomes opening stock.

PowerPoint Presentation : Creditors: - The person \institution from whom you have purchased goods\money on credit is called creditors till the full amount is not paid For example

Assets: - The properties which are necessary for running the business are called assets. For example.furniture, building, tools, cash…etc : Assets: - The properties which are necessary for running the business are called assets. For example.furniture , building, tools, cash…etc

PowerPoint Presentation : Liabilities:- The advance and obligation which are to be paid to the creditors, other person and institutions are called liabilities. For example capital account, creditors, outstanding expenses, bills payable etc are liabilities for business.

Transaction: - mutual dealing of goods, money or services in business is called transaction. Transaction may be cash or credit when money or cash is paid at the time of dealing, it is called cash transaction. If the payment of cash is deferred on any particular date in future, it is called credit transaction : Transaction: - mutual dealing of goods, money or services in business is called transaction. Transaction may be cash or credit when money or cash is paid at the time of dealing, it is called cash transaction. If the payment of cash is deferred on any particular date in future, it is called credit transaction

PowerPoint Presentation : Loan Account: - when funds are borrowed from a person or institution for business, is called loan account.

Purchase of Assets: - When furniture, Building, plant, motor, computer etc.are purchased for setting a business such article are for permanent use and hence called fixed assets. : Purchase of Assets: - When furniture, Building, plant, motor, computer etc.are purchased for setting a business such article are for permanent use and hence called fixed assets.

PowerPoint Presentation : petty Cash: - it is generally observed that in every business irrespective of size and volume of trade, there are many payment which are of small amount and high frequency for example, postage,printing,stationary etc.if all these payment are recorded in cash books it will be unnecessary overburdened. for head cashier. Therefore a separate cash book is kept in charge of a petty cashier to record all such all small cash transaction. This is known as petty cash book. It is the book which is used for recording small and frequent cash transaction everyday.

Create a new company in tally : Create a new company in tally 1.Open tally Application (double click on Tally) 2. Press Alt+f3 3.Select create a new company & press enter 4.Here you will see company creation screen asking enter company details 5.Enter full company details and accept data (press enter) Follow this -

PowerPoint Presentation : In next lesson you will learn How to create ledger in Tally